Erste Group Bank Boosts Earnings Estimates for Alphabet

Alphabet Inc. (NASDAQ:GOOG) – Analysts at Erste Group Bank boosted their FY2027 EPS estimates for shares of Alphabet in a research report issued on Wednesday, August 5th. Erste Group Bank analyst H. Engel now forecasts that the information services provider will earn $14.88 per share for the year, up from their prior estimate of $14.74. The consensus estimate for Alphabet’s current full-year earnings is $20.51 per share.

Alphabet (NASDAQ:GOOG) last issued its quarterly earnings results on Thursday, July 23rd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.87 by $6.24. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The firm had revenue of $119.80 billion during the quarter, compared to the consensus estimate of $116.53 billion. During the same quarter last year, the company posted $2.31 EPS. The company’s revenue for the quarter was up 24.2% on a year-over-year basis.

A number of other equities research analysts have also weighed in on GOOG. KeyCorp set a $445.00 target price on Alphabet in a research note on Friday, July 10th. Wolfe Research set a $460.00 price objective on Alphabet in a research note on Thursday, July 23rd. Oppenheimer restated an “outperform” rating and issued a $400.00 target price (down from $445.00) on shares of Alphabet in a report on Thursday, July 23rd. Scotiabank restated an “outperform” rating and issued a $450.00 price objective (up from $400.00) on shares of Alphabet in a research report on Thursday, April 30th. Finally, Royal Bank Of Canada reaffirmed a “buy” rating and set a $475.00 price objective on shares of Alphabet in a research note on Thursday, July 23rd. Six analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $410.09.

Alphabet Stock Performance

Shares of NASDAQ GOOG opened at $355.84 on Monday. The stock’s 50-day moving average is $353.61 and its 200 day moving average is $339.25. The stock has a market cap of $4.35 trillion, a price-to-earnings ratio of 17.87, a P/E/G ratio of 0.99 and a beta of 1.23. Alphabet has a 1-year low of $197.46 and a 1-year high of $404.47. The company has a current ratio of 2.72, a quick ratio of 2.64 and a debt-to-equity ratio of 0.16.

Institutional Trading of Alphabet

A number of institutional investors and hedge funds have recently bought and sold shares of GOOG. Nvest Wealth Strategies Inc. bought a new position in shares of Alphabet during the fourth quarter valued at approximately $38,000. Lifetime Wealth Management P.C. purchased a new position in Alphabet during the fourth quarter valued at approximately $38,000. Imprint Wealth LLC purchased a new stake in shares of Alphabet during the 3rd quarter worth $31,000. Bard Associates Inc. bought a new position in Alphabet in the fourth quarter worth about $41,000. Finally, Towne Trust Company N.A lifted its position in shares of Alphabet by 34.0% during the fourth quarter. Towne Trust Company N.A now owns 134 shares of the information services provider’s stock valued at $42,000 after buying an additional 34 shares during the last quarter. 27.26% of the stock is currently owned by institutional investors.

Insider Activity

In related news, insider John Kent Walker sold 8,998 shares of the stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $349.29, for a total value of $3,142,911.42. Following the completion of the sale, the insider directly owned 75,290 shares of the company’s stock, valued at approximately $26,298,044.10. This represents a 10.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director John L. Hennessy sold 1,050 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $368.63, for a total value of $387,061.50. Following the sale, the director directly owned 1,481 shares in the company, valued at approximately $545,941.03. This represents a 41.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 600,547 shares of company stock valued at $16,255,540 in the last ninety days. 12.99% of the stock is currently owned by company insiders.

Alphabet Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Monday, September 7th will be given a dividend of $0.22 per share. The ex-dividend date is Friday, September 4th. This represents a $0.88 dividend on an annualized basis and a yield of 0.2%. Alphabet’s dividend payout ratio is 4.42%.

Key Stories Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Strong AI investment and cloud growth: Alphabet’s Google Cloud business reportedly delivered 82% year-over-year revenue growth, while its contracted backlog reached approximately $514 billion. The company’s planned capital spending of about $205 billion in 2026 signals substantial expected demand for AI infrastructure and cloud services. Alphabet’s Cloud Computing Business Just Posted 82% Revenue Growth
• Positive Sentiment: Institutional buying and bullish targets: Migdal Insurance added an estimated 693,726 GOOG shares, increasing its position by roughly 45%. Berkshire Hathaway’s previously disclosed multibillion-dollar Alphabet investment continues to be viewed as a vote of confidence in Alphabet’s long-term AI strategy. Recent analyst coverage remains broadly positive, with a median price target of approximately $422.50. Migdal Insurance Fund Update
• Positive Sentiment: Debt offering supports expansion: Alphabet completed a $25 billion, multi-maturity debt offering. The proceeds provide additional financial flexibility for data centers, AI infrastructure and other corporate needs, complementing its strong operating cash generation. Alphabet Completes $25 Billion Multi-Maturity Debt Offering
• Neutral Sentiment: New Google Play payment option: Google Play is adding Venmo for purchases of apps, games and digital content. The move could improve payment convenience and engagement but is unlikely to materially affect Alphabet’s near-term financial results. Google Play Adds Venmo as a Payment Option
• Negative Sentiment: AI leadership concerns: Analysts warn that high-profile departures from DeepMind could weaken Alphabet’s AI execution and competitive position, contributing to recent volatility and skepticism about the company’s ability to convert heavy spending into returns. Analyst Warns Alphabet Faces Two Major AI Problems
• Negative Sentiment: Mixed fund flows and insider selling: Great Lakes Advisors cut its GOOG position by approximately 536,022 shares, or 44%. Separately, reported Alphabet insiders made no open-market purchases and completed 96 sales over the past six months. These transactions may reinforce concerns about valuation or near-term upside, though they are not necessarily fundamental signals.
• Negative Sentiment: Financing and concentration risks: Critics question whether rapidly expanding AI infrastructure spending can generate adequate returns, particularly as a large portion of projected cloud revenue may depend on unprofitable AI customers. The new debt issuance adds funding capacity but also modestly increases leverage.

Alphabet Company Profile

Alphabet Inc (NASDAQ: GOOG) is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as “Other Bets.” Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company’s history.

Alphabet’s core business centers on internet search and advertising, with Google Search and the company’s ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.